The global Grow Lights Market is estimated to account for US$ 3,119.9 Mn in terms of value by the end of 2021. Grow lights are utilized for giving indoor plants the necessary light they require to grow. The ideal grow light for a specific crop depends on what wavelengths of light are needed for photosynthesis. For example, red and blue peaks of the spectrum are most effective at driving photosynthesis. There are three main types of lights: fluorescent, incandescent, and LED. Each of these has advantages and disadvantages. Some are more expensive than others, and may not work well in all situations.
Global Grow Lights Market: Drivers
Growing requirement for highly economical grow light technologies is anticipated to augment growth of the global grow lights market over the forecast period. The need for more cost-effective grow light solutions is increasing in urban areas. The cost required for food production is high, due to which the demand for affordable food production is growing rapidly in cities. Moreover, Due to lack of availability of fertile land around these regions, the demand for novel urban farming initiatives is significantly high. Thus, these factors are supporting growth of the market all over the world.
Global Grow Lights Market: Opportunities
Growing cultivation of medicinal plants is projected to offer market players multiple business opportunities in the global grow lights market over the forecast period. The popularity of herbal medicine is growing around the world. As a result, cultivation of such medicinal plants and herbs is rapidly increasing globally. This in turn creates demand for grow light systems, which is expected to offer several growth opportunities in the global grow lights market over the forecast period.
Global Grow Lights Market: Restraints
Lack of standards testing practices of product quality assessment is projected to hinder growth of the global grow lights market over the forecast period. There are major challenges of lack of standard testing practices in the lighting industry intended for testing product quality, especially for novel technologies such as induction, LED, and plasma. Some of the developed countries such as the U.S. among others have specific organization to tracking the quality assurances; however, in developing countries such standards are still not practiced. Thus, this factor is likely to impede growth of the market in the coming future.
Global Grow Lights Market - Impact of Coronavirus (Covid-19) Pandemic:
Grow lights are adopted by various manufacturers for different purposes. The epidemic of Covid-19 adversely impacted the grow lights market as several countries imposed preventative measures that impacted various industrial operations. During the pandemic, many countries banned transportation, due to which supply chains were disrupted across multiple industries. Moreover, due to the lack of manpower and raw material supply, demand and production was also disrupted in many industries including the one being discussed. Thus, these factor negatively affected growth of the global grow lights market during the pandemic.
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The global grow lights market was valued at US$ 2,710.0 Mn in 2021 and is forecast to reach a value of US$ 13,838.2 Mn by 2030 at a CAGR of 21.0% between 2022 and 2030.
Among the installation type new installation segment held dominant position in the global grow lights market in 2020, accounting for 72.0% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Grow Lights Market Trends:
Commercial greenhouse segment is gaining traction in the market, which is likely to support the market growth in the near future. This can be credited to increased technological developments along with the use of grow lights. Moreover, the rise in penetration of advanced commercial greenhouse farming is also creating strong demand for grow light solutions. Thus, this trend is expected to continue in the global grow lights market over the forecast future.
Furthermore, increasing number of introduction of novel products by market players is a growing trend in the global grow lights market. This in turn is expected to support growth of the market in the near future. For instance, in July 2022, AB Lighting unveiled its novel LED grow lights, AB330 and AB660, designed for commercial vegetable growers. These lights can optimize power consumption for new environments of green houses. Thus, launch of such new products is a recent trend in the market.
Global Grow Lights Market: Competitive Landscape
Epistar Corporation, Signify, Hydro Grow, Savant Systems Inc., Iwasaki Electric Co. Ltd., Heliospectra AB, Everlight Electronics Co. Ltd., OSRAM Licht AG, LumiGrow Inc., and Illumitex Inc.
Global Grow Lights Market: Recent Developments
In March 2020, Signify entered into partnership with Dubois Agrinovation, who offers a variety of horticulture products for large agricultural organizations, and commercial grow operations. With this partnership Dubois will be providing Philips Green Power Lighting to growers in the eastern regions of Canada.